Income-Based Loans for Bad Credit
Income-based loans offer a great alternative to traditional borrowing for people with credit issues. These products are designed for those with poor credit who have a steady source of monthly income. Whether you’re looking for payday loans for short-term assistance or need installment loans for more flexibility, Cash Loans Bear offers direct lender options without performing a traditional credit check.
What Are Income-Based Personal Loans?
Income-based personal loans are financial products that offer approval depending on a borrower’s financial situation, not their credit score. While traditional loan options often rely on your FICO rating and overall credit history, these products prioritize how much money you make each month. They typically come with no hard credit checks or no Teletrack and don’t affect your credit score.
How Do Income-Based Loans Work?
Income-based loans offered by Cash Loans Bear come with amounts between $100, $200 and $5,000. With their help, you get a lump-sum deposit and need to repay the funds over a set period, either in affordable monthly installments or in full after receiving your next pay.
The approval process involves a soft credit check to evaluate your financial situation. This check doesn’t affect your credit score and takes just a few minutes to complete. You will typically get an approval decision within less than 1 hour.
We take into account factors like your monthly income, employment history, and debt-to-income ratio to determine whether you’re eligible. If approved, the funds are deposited into your active bank account within 1 business day.
Eligibility Requirements
To qualify for an income-based loan from Cash Loans Bear, you need to meet the following simple criteria:
Please note that a minimum income requirement depends on the amount you’re going to borrow. Some options may require you to earn at least $1,000 per month, while others ask for at least $35,000 per annum.
Secured vs. Unsecured Options
Loans offered based on income can be either secured or unsecured. Unsecured loans require no collateral, which also results in higher interest rates. This way, lenders try to offset the risks associated with your bad credit.
Secured loans require a pledge as an extra repayment guarantee. Most lenders usually allow you to borrow against your house, car, savings account balance, or investment portfolio. These options have lower APRs but come with the risk of losing your assets if you fail to repay the money on time.
Types of Loans Based on Income
Here are several income-based loan options you can access:
Installment Loans
Installment loans are long-term financial solutions intended for big purchases or ongoing needs. They allow you to repay the borrowed amount plus interest in affordable monthly installments over an agreed-upon period. At Cash Loans Bear, you can borrow between $500 and $5,000 with an installment loan and repay the funds within 2 to 24 months. No collateral is required.
Personal Loans
Payday loans are unsecured options for short-term financing that you need to repay in full after you receive your next paycheck. These loans are designed for small emergencies and urgent needs. Cash Loans Bear offers payday loans of up to $1,000 with repayment periods of 2 to 4 weeks. The exact sum you can get is determined not only based on your income but also on your state laws and regulations.
Car Title Loans
Title loans are secured loans that use your vehicle’s title as collateral. Lenders offering them determine the maximum loan amount by looking at your income and assessing your car’s market price. You can typically get up to 50% of your vehicle’s value. You retain your car ownership and can still drive it while it’s pledged. However, a lender can repossess the vehicle if you default on your loan.
Loans from Cash Advance Apps
Cash advance apps allow you to borrow a portion of your future paycheck via your smartphone after installing the app on your device. You typically need to create an account and verify your identity, income, and bank account. The loan amount you can get is usually calculated based on how much you’ve already earned according to your employee timesheet. The repayment is made by your next paycheck. Many applications offer interest-free cash advance loans but may charge a monthly membership fee or an express fee for same-day deposits.
Pros and Cons to Consider
Income-based loans may be a good option for bad credit borrowers who face a financial emergency or need extra cash for a big purchase. However, they also come with several concerns you need to know before making a final decision. Here’s a detailed look at their advantages and drawbacks.
| Pros | Cons |
| Can be obtained with bad credit | High APRs that can exceed 400% |
| No credit check options that keep your FICO rating safe | Extra fees may be charged |
| Easy application process that can be completed online | Can’t help you build credit but can lower your credit score in case of late payments |
| Instant approval and funding within 24 hours | Increased risks of predatory lenders and debt cycles |
Are Income-Based Loans Right for You?
Loans with approvals based on income can be a good solution for borrowers with poor credit who face an urgent situation and need money fast to fix it. They will suit you if you have a steady income and deal with a reliable lender. However, they may not be the best option for people with good and fair credit who can qualify for traditional loans at better terms. They also require thorough consideration for those with unstable or fluctuating incomes.
Loan Amounts and Income Correlation
Your monthly income is not the only factor that may affect the amount you can borrow. There are a few more parameters lenders use to determine the sum you can get:
However, the correlation between the maximum loan amount and your income is still very high. At Cash Loans Bear, we do not take into account the bare amount you get on hand. We look at the sum that remains after you make all your mandatory payments, such as rent, utilities, and other debts you have. This is made to protect your basic economic existence.
How to Apply for Income-Based Loans Online with Cash Loans Bear?
Cash Loans Bear offers a fast and stress-free way to borrow money quickly. Here are three simple steps you should take to apply for our income-based loans online:
- Get the funds. If approved, read and e-sign the loan agreement if the terms suit you. The money will be deposited into your bank account on the same or the next business day.
- Complete an application form. You can do this via the website 24/7 in just 5 minutes. Just enter your basic personal and financial information and submit it.
- Receive an approval decision. Your data will be verified via a soft credit check. We will get back to you with a response within 15 minutes via email.
Alternatives to Income-Based Loans
If income-based loans don’t suit you but you still need extra money with bad credit, here are some alternatives that may work for you:
Joint Loans
Also known as cosigned loans, these borrowing options require you to provide a cosigner who will be responsible for repaying your debt if you fail to do this. Cosigners are typically some of your family members or close friends who have strong credit and a stable income. Adding a cosigner involves higher approval chances and better loan terms as it reduces the lender’s risks.
Home Equity Loans and HELOCs
These are secured options that allow you to borrow up to 80% of the equity you own in your house. The equity is used as collateral. Home equity loans provide you with a lump-sum amount you repay with interest in fixed installments. They are often used for big purchases or major life events. HELOCs offer a revolving credit line. It may be a more convenient option if you need money for ongoing needs or projects with an uncertain cost. With a HELOC, you only pay interest on the amount you actually use.
Peer-to-Peer Loans
Peer-to-peer loans are alternative loan solutions you can obtain via specific platforms that connect borrowers with individual investors. This way, you borrow money from another individual, bypassing financial institutions. P2P loans often come with no credit check and may offer favorable loan terms. Just note that platforms may charge their own fees for connecting you with a potential lender.
Credit Cards
While most credit cards involve a hard credit check and require a borrower to have good credit, you can still find options available to people with less-than-perfect ratings. Although you don’t need to expect high credit limits or low APRs, you will be able to enjoy the flexibility of a credit card and improve your credit score by managing your debt responsibly. Alternatively, you can issue a secured credit card that requires a security deposit that serves as your credit limit.
Worry no more about your credit—get the money you need today!
FAQ
Can I get a loan based on my income alone?
Sure, there are several loans based on income, not credit. However, approval also depends on the amount you’re going to get and your debt-to-income ratio.
Do lenders check credit for income-based loans?
Lenders typically perform a soft credit check to estimate your overall financial situation and see how likely you are to repay the loan.
What is the minimum income requirement?
The minimum income requirement depends on the amount you’re going to get and your repayment period. Some options only require you to make at least $1,000 per month, while others set the minimum at an annual income of $35,000.
Do you offer income-based loans with no credit check?
At Cash Loans Bear, we perform a soft credit inquiry to ensure you’re financially stable. Such a check doesn’t affect your credit score and is completed in a matter of minutes.
How much can I borrow based on my income?
Loans from Cash Loans Bear offer amounts between $100 and $5,000. You’re welcome to pre-qualify now via the website and find out how much you can borrow based on your income.
What income sources do you accept?
We accept income from official employment, self-employment, freelance, rent, and other sources, provided that you can verify it.